Now Reading: Finance Ministry revamping Model BIT, Cabinet nod soon
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Finance Ministry revamping Model BIT, Cabinet nod soon
The Finance Ministry is reviewing its Model Bilateral Investment Treaty to make it more investor-friendly and will seek Cabinet approval soon, Economic Affairs Secretary Anuradha Thakur said on Friday. Speaking at an…
The Story in Brief
The Finance Ministry is reviewing its Model Bilateral Investment Treaty to make it more investor-friendly and will seek Cabinet approval soon, Economic Affairs Secretary Anuradha Thakur said on Friday. Speaking at an NCAER event, Thakur said the review covers clauses based on negotiation experience and global practices, and is a work in progress.
Thakur noted that investment treaties differ from trade pacts because investors can take sovereign governments to arbitration. With India's outward direct investment rising, she said clauses protecting Indian firms abroad may be worth retaining. The existing Model BIT was approved by the Cabinet in 2015. She dismissed fears that agency overreach caused the recent net FDI dip.
The Indian Opinion
Much of the chatter around the BIT revamp will frame it as a concession to foreign capital or a crackdown on investor rights. The real test is balance: protecting Indian companies overseas while keeping the treaty palatable to developed nations that balked at the 2015 model. Watch the dispute resolution clause, specifically whether India retains the right to exhaust local remedies before arbitration. If Cabinet keeps that, the treaty stays sovereign-first. If it drops it, capital inflow claims deserve scrutiny.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
